European markets opened February on a mixed but stabilizing note on Monday, February 2, 2026, as eurozone equities rebounded from recent losses while broader regional participation remained uneven. Gains in Germany and across eurozone blue chips suggested renewed buying interest after last week’s volatility, yet weakness in currencies and the broader MSCI Europe index highlighted lingering caution among investors. The session reflected a market attempting to regain balance after January’s choppy close.

Eurozone Blue Chips Lead the Recovery

The rebound was led by the EURO STOXX 50, which climbed 0.95% to 5,947.81. Financials and industrial stocks drove the advance, benefiting from bargain hunting following recent pullbacks. The move suggests investors are selectively re-entering large-cap eurozone names, particularly those viewed as oversold after January’s sell-offs.

Germany’s DAX rose 0.94% to 24,538.81, recovering a portion of Friday’s sharp decline. Export-oriented and industrial stocks saw renewed demand, indicating improving short-term risk appetite despite ongoing macro uncertainty. The DAX’s rebound points to a willingness among investors to re-engage with cyclical exposure, albeit cautiously.

Mixed Performance Across Broader European Markets

Elsewhere, gains were less convincing. France’s CAC 40 closed unchanged at 8,126.53, as strength in defensives offset weakness in cyclical sectors. The flat close reflects a wait-and-see approach, with investors reluctant to commit aggressively ahead of clearer signals on growth and earnings.

The Euronext 100 Index also finished flat at 1,771.11, highlighting restrained trading among Europe’s largest multinational firms. While some large-cap stocks benefited from the eurozone rebound, participation remained narrow, limiting upside at the pan-European level.

In the U.K., the FTSE 100 ended the session unchanged at 10,223.54. Gains in defensive and commodity-linked stocks were offset by losses in currency-sensitive sectors, leaving the index range-bound despite broader eurozone strength.

Currency Weakness Undermines Broader Confidence

Currency markets moved sharply lower, tempering enthusiasm around the equity rebound. The Euro Index fell 0.89% to 118.61, while the British Pound Index dropped 0.86% to 136.87. The declines reversed part of last week’s currency strength and raised questions about the durability of recent optimism.

While weaker currencies can eventually support exporters, the abrupt moves signaled renewed uncertainty around monetary policy expectations and regional growth momentum. The currency sell-off contributed to caution across equity markets, particularly outside the eurozone core.

Regional Measure Reflects Uneven Participation

The broader MSCI Europe fell 1.00% to 2,731.82, underscoring the uneven nature of the session. The decline suggests that gains in Germany and eurozone blue chips were not sufficient to offset weakness across other markets and sectors. Mid-cap stocks and peripheral markets remained under pressure, reflecting selective rather than broad-based risk-taking.

Outlook

Looking ahead, European markets appear to be testing the early foundations of a February recovery while still grappling with volatility carried over from January. Investors will closely watch upcoming economic data, corporate earnings releases, and central bank communication for confirmation that growth expectations are stabilizing. Key risks include continued currency volatility, uneven sector participation, and renewed pressure on regional benchmarks outside the eurozone core. At the same time, opportunities may emerge in high-quality large-cap stocks and selectively in cyclical sectors if confidence continues to rebuild. As February unfolds, market direction is likely to hinge on whether today’s rebound can broaden into a more durable regional advance or remain confined to a narrow group of leading indices.